Volvo Car Group expects its sales to increase by about 10% in 2014, “driven by steady growth in key markets and an improving product offer”, according to president and chief executive Håkan Samuelsson.

He was speaking in Stockholm, where he reported operating profits of 1.21 billion krona for the first six months of 2014 and revenues of 64.8 billion krona. Sales were up by 9.5% to 229,013 krona, and net income was 535 million krona.

Mr Samuelsson said: “After this solid first half, we look forward from a position of strength. Growing demand for first-class safety and environmental performance will continue to support our global growth. We are growing our presence in China, and we expect to sell at least 80,000 cars there this year.

The European market is also showing signs of recovery and growth, and we are well placed to benefit further. We are committed to the USA, where a new management team is implementing a revival plan to improve our performance.”

Volvo strengthened its position as market leader in Sweden, with sales rising by 20.2% in the first half. Meanwhile, sales rose by 34.4% in China, which is now its biggest market.